The Stars Group Smashed After Releasing Q2 Earnings Report
Published on August 12th, 2019 4:12 pm EST
Things went from bad to worse for The Stars Group today, as shares of the company traded almost 20% lower to close at $12.99 after the company released its Q2 earnings report.
This is the lowest that the company's shares have traded for years and an incredible drop from just over a year ago, when shares were trading at over $36/share.
In short - the company has lost roughly 2/3rds of its value since hitting a peak right before the start of the 2018 World Cup.
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Investors fled the stock earlier today after the company missed analysts' revenue expectations. Analysts had been expecting the company to post revenues of $655.86 million in the second quarter, though the company came in at $637.62 million.
The Stars Group also cut their Full Year EPS, revenue and EBITDA expectations. FY earnings expectations were cut from $1.87-$2.11 per share down to $1.68-$1.83, revenue expectations were cut from $2.64 billion-$2.765 billion down to $2.5 billion-$2.575 billion, while EBITDA forecasts were reduced from $960 million-$1.01 billion down to $905 million-$930 million.
In short - things are going the wrong way at The Stars Group right now and investors are worried.
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Alarmingly, poker revenues were down 11.7% for The Stars Group from the same period last year, while betting revenues also dropped.
Gaming revenues, on the other hand, were up 12.3%.
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The company's biggest revenue source is still its poker brand, and these revenues are dropping off dramatically, which is being reflected in the company's plummeting share price.
Source: Yahoo! Finance TSG Quote
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Filed Under: Online Poker Rooms